Headlines
In Brief
Union Jack Oil* (LON:UJO – 0.19p) – (BUY – 0.74p) – Additional Wressle Interest a Step Forwards
Trinity Exploration and Production (LON:TRIN – SUSP) – Plea for Time
Range Resources (LON:RRL/ASX:RRS – 0.47p/A$0.01) – Milestones Provided
Sirius Petroleum (LON:SRSP – 0.40p) – Half-year Report
LGO Energy (LON:LGO – 0.10p) – Back in the Saddle
In Brief
Union Jack Oil* (LON:UJO – 0.19p) – (BUY – 0.74p) – Additional Wressle Interest a Step Forwards: Today's news that the Company has acquired a 3.34% interest to add to its 8.33% interest in the asset is a step forwards, as it provides the Company with further cash flows and flexibility. On the back of this, our valuation is now $33.6mm (0.74p), of which $4.9mm (0.11p) is core. We are reiterating our BUY Recommendation.
Trinity Exploration and Production (LON:TRIN – SUSP) – Plea for Time: Today's announcement is both a blessing and a curse in that the financials underline the extent to which Management has pared back the costs to fit its business. However, there is also fact that there was (i) that much fat in the first place given the storm that was coming; and (ii) that the statement, in which the same management team that piloted the Company on to the rocks, effectively asks for understanding and more time. We are believers the ability of management learning from their experiences, but it must now come with a clearly articulated plan and measurable targets, not just a request. If the creditors and equity holders fail to hold the management team to account from this point forwards, they will be complicit in its failure.
Range Resources (LON:RRL/ASX:RRS – 0.47p/A$0.01) – Milestones Provided: Today's results are important for one key element, in that the for the first time, Management have provided a route map towards achieving its 2,500bpd year-end 2017 target. We applaud this step as it not only demonstrates outwardly that (i) there is a plan to achieving this production rate, and it’s not just wishful thinking; and (ii) we have a clear understanding of how it will get there. What we need management to hold to is the disclosure of progress towards these goals, even if they are likely to be found wanting. We believe that shareholders should take heart from today's release, as it demonstrates that the management team are taking their position seriously.
Sirius Petroleum (LON:SRSP – 0.40p) – Half-year Report: There isn't really much to say that hasn't been obvious from the outset, i.e., there has been no progress towards monetising the asset, and the executive team are moribund. However, the addition of Messers Stein & Taylor’s Havoc Partnership to the technical team and Simon Hawkins to the non-exec needs time to bed in, but if there was to be a way forward for the Company in its current guise, it will be found by this team.
LGO Energy (LON:LGO – 0.10p) – Back in the Saddle: After what has been a difficult period for the Company, the new that the Company has recompleted 2 wells in Goudron is a positive. While there will need to be further successes before the Company can get back to where it once was, this is at least a step in the right direction.